At the risk of wasting my breath and wearing out my fingers, I’d like to point out that the insurance business is not based on bullshit. The price a company charges for a particular policy is determined by reason and math. Not only that, but in many states, including California, changes in rates may be denied by the insurance commissioner if those changes are not justified. I’d also like to mention that of every $100 in premium, $60 must be set aside for the payment of claims. That leaves $40 to cover all the other stuff. Is insurance profitable? Of course it is, or no one would ever take the risk to cover your ass. That being said, if one company charges substantially more than others for similar coverage, it’s their way of saying “we don’t really want this business”. What’s profitable this year may not be profitable next year. Car insurance in particular falls under this category. Consider the way new cars are designed, to sacrifice themselves to save the occupants. You’re less likely to be killed or seriously injured, but the extent of the damage to the car may render it a total loss. Who eats that? The company does, and that drives part of the decision making process.
Considering the amount of wild speculation and unfounded guesses upthread, the subject seems out of place in general questions. I know insurance companies are a frequent target for disgruntled folks, but think about it for a moment. When the shit hits the fan, who’s more likely to be of help, your rich uncle who’s got cash in the bank, or your broke brother-in- law? Profit is not always evil.